U.S. President Donald Trump has put an extra 25% tariff on Indian imports because India keeps buying oil from Russia. This makes the current 25% tariff into a 50% tariff, which is double what it was before. This move, which will happen 21 days after it was announced, will put India in a very small group of countries.
How it affects India’s economy: Expert opinion from “X’’
Some experts say that this increase in tariffs could do a lot of damage to India’s economy and export sectors. Key industries that will be affected are textiles, precious stones, electronics, pharmaceuticals, car parts, and small and medium-sized businesses (MSMEs).
Exporters are worried that the higher taxes could cut their sales by as much as 40 to 50 percent. Smaller companies are especially at risk because their profit margins are so small.
ANI on X tweeted Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings, emphasizing how sectors like drugs will be severely hit by this tariff increase
Industry leaders reacted on X to the tariff rise; Anand Mahindra notably tweeted about the “law of unintended consequences” in this tariff war. (NDTV covered)
Trade talks that didn’t go well
The increase in tariffs happened after trade talks failed. India was sure they could reach a deal that would have kept tariffs at 15-20%, but political mistakes, missed signals, and U.S. demands on access for the farm and dairy sectors scuttled the talks.
According to the diplomatic perspective, Experts say that India shouldn’t rush into a deal that could hurt its most important industries. Instead, they say that India should take a firm stance while keeping diplomatic lines open.
Rahul Gandhi tweeted, calling the tariff a form of economic blackmail.
Former diplomat Anil Trigunayat responded on X, emphasizing India’s national interest and refusing to give in to U.S. pressure regarding Russian oil imports.
Prime Minister Modi’s Take on Farming, Fishing, and Animal Husbandry at the Local Level
Even though there are problems, Indian Prime Minister Modi has said that he is ready to pay a high price to protect India’s most important interests (farming, fishing, and Animal Husbandry), putting national needs ahead of pressure from other countries.
According to experts, the current U.S. administration seems to care more about “onshoring” and protecting domestic interests than building foreign partnerships. This makes the trade relationship even more complicated.
What India Did and Concerns About Diplomacy
Indian officials and trade experts have said that the taxes are unfair and don’t make sense, pointing out that other countries that buy oil from Russia aren’t facing the same punishments. Some people think that the U.S. raised tariffs as a way to get India to buy more American goods, especially energy products, as a bargaining chip.
What should we worry about when it comes to the future and suggestions?
Last but not least, the tariff increase could hurt India’s exports and economic growth, which is not good. However, experts advise India to avoid making too many concessions in touchy areas and instead focus on reasonable talks to restore trust with the U.S. market, which is still important for India’s trade and investment growth goals.
